Firm break-up and performance

0377166 - NHU-C 2013 RIV DE eng J - Journal Article
Kočenda, Evžen - Hanousek, Jan
Firm break-up and performance.
Economics of Governance. Roč. 13, č. 2 (2012), s. 121-143. ISSN 1435-6104. E-ISSN 1435-8131
R&D Projects: GA ČR GA402/09/1595
Institutional support: PRVOUK-P23
Keywords : break-up of firms * corporate performance * ownership changes
Subject RIV: AH - Economics
Impact factor: 0.588, year: 2012

We analyze the effects of firm break-up on corporate performance. Our analysis is based on a unique data set for a large number of Czech firms spanning the period 1996–2000. We employ a propensity score matching procedure to deal with endogeneity problems. Our results, which are generally in line with the positive effects of firm break-up found in the developed-market literature, show that the initial effects of firm break-up are positive but after a certain point they disappear within a short time. Factors like changes in ownership structure or management are found to be behind later improvements in the performance of firms.
Permanent Link: http://hdl.handle.net/11104/0209404